There is no way that pulling timber out of the forest and converting into a product actually sequesters anything. Hauling the wood out of the forest to the mill likely releases more carbon than is sequestered by the tree in its lifetime.
This probably not true, considering that for many decades steam powered logging equipment burned wood before coal became the dominant fuel source (and thus able to cut down and process a tree with less energy than we got from a single tree), although many mills were powered by flowing water.
It's the same notion that "PV panels emit an equivalent of 50g of CO2 per kW/h (assuming a 25 year service life)". Even though the panel doesn't emit anything during operation, mining and manufacturing are still heavily reliant on fossil fuels.
The tree itself sequesters carbon, but the carbon output from using the tree is what is produced burning it + getting it ready to burn.
In the US, increased demand can be met with renewable sources of lumber. This has the side benefit of modest carbon sequestration.
Population growth is also slowing, which may actually pose a more serious problem for labor and innovation. Immigration helps, but it won't be enough.
In other areas of the world, the problem is one of economics, as the parent mentioned.